Wednesday, April 1, 2009

Who brainwashed whom?

But Paul Samuelson very sure in centrist economics, he says in a recent column in Business world that:

“It will be a tragedy — an avoidable tragedy — if today’s democracies permit themselves to stay mired in long slumps.

When the public becomes too scared to spend, their shift to saving kills off investment. My generation of macro economists called this “the Paradox of Thrift”. Today’s teachers in the Ivy League got brainwashed by scholars like Milton Friedman and Friedrich Hayek to forget such realities.”